Page 79 - Pobl Annual Report FY25

Annual Report 2025 77
Notes to the Financial Statements
for the year ended 31 March 2025
Basis of consolidation
The Group financial statements consolidate the
financial statements of Pobl Group Limited and all its
subsidiaries at 31 March each year.
Subsidiaries are consolidated from the date of
acquisition. This is the date upon which the Group
achieves control. This is defined as the power to
govern the financial and operating policies of an entity
so as to obtain benefits from its activities. Subsidiaries
continue to be consolidated until the Group ceases to
have control.
Where a subsidiary has different accounting policies to
the Group, adjustments are made to those subsidiary
financial statements to apply the Group’s accounting
policies when preparing the consolidated financial
statements.
Entities in which the Group holds an interest that are
jointly controlled by the Group and one or more other
ventures under a contractual arrangement are treated
as jointly controlled entities and accounted for using
the equity method.
Entities other than subsidiary undertakings or joint
ventures in which the Group has a participating
interest and where the Group exerts significant
influence are treated as associate companies and are
accounted for using the equity method.
In the Company’s financial statements, investments in
associates, joint ventures and subsidiaries are
accounted for at cost less impairment.
Revenue recognition
Revenue is recognised to the extent that the Group or
company obtains the right to consideration in exchange
for its performance. Revenue is measured at the fair
value of consideration received excluding discounts,
rebates, VAT and other sales taxes or duty.
Where the consideration receivable in cash or cash
equivalents is deferred and the arrangement constitutes
a financing transaction, the fair value of consideration is
measured as the present value of all future receipts
using the imputed rate of interest.
Revenue represents rents and service charges
receivable together with other related income including
grants receivable in connection with the provision of
supported housing.
Rental and service charge income is stated net of
losses from voids.
Income in respect of services provided is recognised
when the Group or company has fulfilled its contractual
obligations.
Investment properties
Properties held by the Group to earn rentals or for
capital appreciation, rather than in the supply of social
housing or for administration purposes, are treated as
investment properties and measured at fair value. At
each reporting date the changes in fair value are
recognised in the Statement of Comprehensive Income.
Property, plant and equipment –
housing properties
Housing properties are held at cost less accumulated
depreciation and any accumulated impairment losses.
Cost includes the cost of acquiring land and buildings,
interest capitalised during the development period, and
development costs directly attributable to the
construction of new housing properties during the
development. Capitalisation ceases when substantially
all the activities that are necessary to get the asset
ready for use are complete.
Housing properties are split between the structure and
those major components which require periodic
replacement. Replacement or restoration of such major
components is capitalised and depreciated over the
estimated useful life of the component.
The assets’ residual values and useful lives are
reviewed, and adjusted, if appropriate, at the end of
each reporting period. The effect of any change is
accounted for retrospectively.
Housing properties in the course of construction are
held at cost and are not depreciated. They are
transferred to completed properties when handed over
for letting or sale.
Donated land is treated as both a cost of land and grant
received, valued at fair value at the time of the donation.
1.3. Summary of significant accounting policies (continued)